In 2016 Mary earned $400,000 as a VP of Tax at ABC corp. She also sold 10,000 of her stock options at a gain of $250,000. Please discuss Mary's tax ramifications under special rules for high-income taxpayers

Jacobson Manufacturing Corporation earned $96,000 in profit during 2017. Machinery was sold for $126,000 and a $36,000 loss on the sale was recorded. Machinery purchases totalled $395,000 including a July purchase for which an $148,000 promissory note was issued. Bonds were retired at their face value, and the issuance of new common shares produced an infusion of cash. Jacobson’s comparative balance sheets were as follows:

Required: (Enter amounts in thousands, as per balance sheet above. List any deduction in cash and cash outflows and loss as negative amounts.)
1. What was Jacobson’s depreciation expense in 2017?

2. What was the amount of cash flow from operating activities?



3. What was the amount of cash flow from investing activities?



4. What was the amount of dividends declared? paid?

5. By what amount would you expect the total inflows of cash to differ from the total outflows of cash?



6. What was the amount of cash flow from financing activities?

​(Measuring growth)  Solarpower Systems earned ​$20 per share at the beginning of the year and paid out ​$8 in dividends to shareholders​ (so, D 0 = $ 8​) and retained ​$12 to invest in new projects with an expected return on equity of 21 percent. In the​ future, Solarpower expects to retain the same dividend payout​ ratio, expects to earn a return of 21 percent on its equity invested in new​ projects, and will not be changing the number of shares of common stock outstanding.

Q:

Calculate the future growth rate for​ Solarpower's earnings.

If the​ investor's required rate of return for​ Solarpower's stock is 14 percent​, what would be the price of​ Solarpower's common​ stock?

What would happen to the price of​ Solarpower's common stock if it raised its dividends to $14 and then continued with that same dividend payout ratio​ permanently? Should Solarpower make this​ change? ​ (Assume that the​ investor's required rate of return remains at 14 percent​.)

What would happened to the price of​ Solarpower's common stock if it lowered its dividends to ​$2 and then continued with that same dividend payout ratio​ permanently? Does the constant dividend growth rate model work in this​ case? Why or why​ not? ​ (Assume that the​ investor's required rate of return remains at 14 percent and that all future new projects will earn 21 ​percent.)

Determine the total allowable 2018 earned income credit in each of the following situations:

In January 2018, Sonja Deposited $20,000 in a bank in the Bahamas. She earned $500 Interest income. She closed the Account in December 2018.

a. Is Sonja subject to the FBAR reporting requirement?

b. Is the Interest Income taxable in the United States?

During 20X1 Beth earned a salary of $150,000. In 20X1, she invested $40,000 for a 20% interest in a Grady Memorial Hospital, a limited partnership. Beth does not material participate in this activity. Operations of the activity result in a loss of $325,000, of which Beth’s share is $65,000. For her 20X1 return, would Beth be able to deduct any of the loss relating to this activity? If, so how much?

Why is the times interest earned ratio considered important? ANswer in 100-150 words

Hedge Funds

1. Hedge funds have earned a reputation for making the most money in the time of crises. Search the news for some large recent returns by a hedge fund.  
2. Describe the hedge fund, the returns, and how the fund has achieved them.

1. FOR BURGER KING: WHAT IS THE 2018 AND 2017 TIMES INTEREST EARNED

2. FOR BURGER KING: WHAT IS THE 2018 AND 2017 WHAT IS THE TOTAL DEBT TO TOTAL ASSETS

3. FOR BURGER KING WHAT IS THE 2018 AND 2017 AVERAGE COLLECTION PERIOD

Why is “Earned Value Management” more appropriate to use with projects than for other investments?